New from Prudential: Level Term Life to Age 65

As products of the most indebted college graduation classes in U.S. history, you’re faced with some rather complex financial decisions. From figuring out how to tackle crushing student loans to wrapping their heads around the concept of saving for retirement, recent grads can find themselves overwhelmed with new financial obligations and planning for the future. One of the things millennials tend to put on the back burner is the need to purchase life insurance, and that’s a sad reality in that the current under-30 crowd is the most under-insured generation in history.

While many young, unmarried individuals believe they have no immediate need for life insurance, in most cases single millennials should have a policy in place.

Top three reasons for millennials to purchase life insurance:

· Protecting family members or co-signers against outstanding debts and student loans

· Covering end-of-life expenses

· Locking in a low price

Student loans and credit card debt are two of the biggest reasons why millennials should purchase life insurance, as young adults are accumulating larger amounts of debt quicker than ever before. A life insurance policy can be used to pay off any outstanding loans or debts so that this burden is not passed onto family members or co-signers.

That can happen when your debt is in a joint account or has been co-signed by a parents, guardian or relative.

Among those who took out loans, the average student who graduated with a bachelor’s degree in 2014 accumulated around $33,000 in student loans – almost twice the average debt burden of graduates 20 years ago, according to the Wall Street Journal. More than 70 percent of college students will graduate with student loan debt.

Government student loans are discharged if the student dies, but private one may not be.

According to a 2014 survey by Experian credit reporting bureau, two-thirds of millennials used a co-signer, which makes that person liable for any shared private debt.

Aside from outstanding debts and student loans, millennials should also purchase life insurance to help cover end-of-life expenses – a topic no one wants to talk about but should discuss.

Even a relatively healthy millennial can rack up hundreds of thousands of dollars in medical bills. Unfortunately, those bills don’t go away when someone passes away, especially if a friend or family member has officially agreed to help cover those expenses.

It’s brutal, but consider the case of funeral expenses. The average funeral costs $6,000, and purchasing a life insurance policy can help cover those costs so your loved ones won’t have to worry about paying them.

Purchasing a life insurance policy when you’re young and healthy means the difference between securing an affordable – or unaffordable – premium. That’s because life insurance premiums are largely based on the age and health of the applicant, so the cost of coverage increases as we age.